June 5, 2020

Air France-KLM calls for swift financial aid and support from States

The Franco-Dutch group Air France-KLM will need financial aid “quickly” given the almost complete cessation of its activity and considers the public support of the two states that are in its capital to be essential.

In an interview published this Tuesday by “Le Figaro”, the general director of Air France, Anne Rigail, underlines these financial needs despite her 6,000 million euros of cash, and alludes to discussions with the authorities of France and the Netherlands, but without entering the modalities.

Rigail notes that the coronavirus crisis has meant the loss in a few days of 95% of its activity, and says that this week Air France covers 36 destinations, with 5 intercontinental flights and 15 short and medium distance flights every day, in addition to load.

Also that almost all of the employees of all its brands (Air France, Transavia, Hop) are partially active, on average 80% of the time.

Although a part of the salary charges has been assumed by the government program launched in the face of the crisis, the company has to face between 40 and 60% of the fixed charges, such as taxes or the rental of planes.

And the CEO warns that despite the fact that the French government has announced the postponement of some taxes and that the company has frozen many investments, “that will not be enough.”

“The support of the French and Dutch states is absolutely necessary,” he adds, before thanking the two governments (each holding a 14% stake in the capital of Air France-KLM) for having pledged to provide that aid.


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